Obsidian Energy Announces Notice of Partial Redemption for $30 Million of Our Outstanding Senior Unsecured Notes

Press Release

Calgary, Alberta–(August 18, 2025) – OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (“Obsidian Energy”, the “Company”, “we”, “us” or “our”) today announced that we issued a notice to holders of our 11.95 percent Senior Unsecured Notes due July 27, 2027 (the “Notes“) of our election to redeem, on a pro rata basis, $30.0 million of the $110.8 million aggregate principal amount of the Notes currently outstanding (the “Redemption Notice“). “The Company’s strong balance sheet and liquidity position is enabling us to pay down a portion of our outstanding Notes thereby reducing our go forward interest expense,” commented Stephen Loukas, Obsidian Energy’s President and CEO.

OBE Announces Notice of Partial Redemption for $30 Million of Our Outstanding Senior Unsecured Notes

As outlined in the Redemption Notice, the redemption date is August 29, 2025 (the “Redemption Date“) and the Notes will be redeemed based on a redemption price of $1,029.88 per $1,000 principal amount of the redeemed Notes (or 102.988 percent of principal amount), plus accrued and unpaid interest thereon up to, but not including the Redemption Date. The Company intends to use available liquidity to pay the redemption price of the redeemed Notes. All interest on the redeemed Notes shall cease from and after the Redemption Date. Upon completion of the redemption, the Company will have $80.8 million of Notes outstanding and the maximum amount of any semi-annual free cash flow offer required to be made under the trust indenture, which governs the Notes (the “Indenture“), will be $17.0 million.

Formal notice of redemption is being delivered to the registered holders of the Notes through Computershare Trust Company of Canada (“Computershare“), the trustee under the Indenture, in accordance with the Indenture. Registered holders of the Notes may also obtain a copy of the Redemption Notice from Computershare by telephone at 1-800-564-6253 or email at corporateactions@computershare.com. Payment of the redemption price and surrender of the Notes for redemption will be made through Computershare on the Redemption Date.

Non-registered holders of Notes should contact their broker or other intermediary for information regarding the redemption process for the Notes in which they hold a beneficial interest.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Obsidian Energy

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets, primarily in the Peace River, Willesden Green and Viking areas in Alberta. The Company’s business is to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin.

Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American exchange in the United States under the symbol “OBE”.

All figures are in Canadian dollars unless otherwise stated.

CONTACT

OBSIDIAN ENERGY

Suite 200, 207 – 9th Avenue SW, Calgary, Alberta T2P 1K3
Phone: 403-777-2500
Toll Free: 1-866-693-2707
Website: www.obsidianenergy.com

Investor Relations:
Toll Free: 1-888-770-2633
Email: investor.relations@obsidianenergy.com

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